Loans

Stated Income Loans: A Thing Of The Past?

Written By: admin
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Feb•
13•13

Can People Still Get Stated Income Loans?

Stated income loans definitely aren’t a thing of the past. Many people still count on them today. However, they are just not so prominent anymore since the credit crisis, state of the economy, and other pertinent factors.

If you qualify for a stated income loan, you can get approved quite a bit faster than other traditional ways of getting funding. However, you have to fall into the category of people that are likely to qualify for such type of financing.

Many entrepreneurs and self-employed people tend to use these types of loans. This is because if it’s a new business they own, they have income, but can’t properly use it as evidence yet because they haven’t paid taxes on it yet, they haven’t filed yet, or other reasons. Other people that cannot prove that they have income, or don’t care to share it with the bank for a number of reasons can also at times, get financed as well.

You must know that with these types of loans come higher down payments and also higher interest rates as well. This only makes sense as the bank is taking on more of a risk to allow such people to acquire the loan. Even so, stated income loans remain a necessity for some depending on their situation.